Making Cents of Energy. Gordon Moore Vice President McCormick Motors, Inc.

Transcription

1 Making Cents of Energy Gordon Moore Vice President McCormick Motors, Inc. 1

2 Benchmarking Benchmark 1994 to 1997 What we used 30,300 sq ft 29,500 kwh/month 2265 Therms/month $45,000 annual energy bill What we disposed of 10,000 gallons of waste liquids annually 125 tons of solid waste annually (24 yards of 200 pounds/yard) Established goals to reach by

3 Energy Goal 50% reduction Liquid Recycling Goal 50% reduction Solid Waste Goal 25% reduction Conducted Audits (Where; How Much; When) Rolling Five Year Plan Low cost - High pay off (LCHP) High cost High pay off (HCHP) Low cost Low pay off (LCLP) High cost Low pay off (HCLP) Three Month Assessments Steady Progress The First Decade 24 energy saving initiatives 17 recycling initiatives 7 environmental initiatives 3

4 Energy Efficiency/Conservation Initiatives Waste oil furnaces (HCHP) Climate control of work areas (LCHP) Overhead door seals (LCHP) Timers for outside lighting (LCHP) Timers for shop equipment (LCHP) Ceiling fans for air circulation (LCHP) HE indoor fluorescent lighting (HCHP) Polymer blinds (HCHP) 4

5 Energy Efficiency/Conservation Initiatives (cont) Insulation to walls and roof (HCHP) Replaced door entry points (HCHP) Sky light tubes for natural lighting (LCLP) Programmable power strips (LCLP) Compressor air line inspection schedule (LCHP) On demand air compressors (HCHP) Tied shop equipment turn off with lights (LCHP) Renovated 10,000 sq ft storage building that needs virtually no electricity (LCHP) 5

6 Energy Efficiency/Conservation Initiatives (cont) Site metering (HCLP) Replace lot lights with HE lighting (HCHP) Installed de-stratification fans (LCHP) Installed vestibules for door entry points (HCHP) Inside seal on overhead doors (LCHP) Maintenance program on door seals (LCHP) LED sign lighting (HCLP) Implemented semi-annual facility inspection (LCHP) Installed room occupancy sensors in lightly used areas (LCHP) Timers on office equipment (LCLP) 6

7 Recycling Initiatives Waste oil storage system (HCHP) Cardboard recycling (LCLP) Metal recycling (LCHP) Wooden pallet collection (LCLP) Battery collection (LCLP) Antifreeze collection (LCLP) Magazine/newspaper collection (LCLP) Bulk shredding of important papers (HCHP) Reclaim paint and solvents (HCHP) Water based parts washers (HCHP) Plastic collection (LCLP) Computer equipment recycling (LCHP) 7

8 KW & Therm Use % kwh/yr Therms/yr Sq Ft 0 8

9 Energy Results (2008) Objective 50% reduction in energy use Results - 80% increase in building space (30,300 to 54,600 sq ft) 60% decrease in gas (2,265 to 900 Therms/mo.) 45% increase in electric (29,500 to 42,800 kwh/mo.) 65% increase in annual energy bill ($45K to $75K) 9

10 Recycling Results Objective 50% reduction in liquid waste 25% reduction in solid waste Result 99% reduction in liquid waste (10,000 gallons recycled or used) 50% reduction in solid waste to land fill (An annual reduction of 62 tons) 10

11 Environmental Initiatives Rerouted floor drains (HCHP) Indoor drains to eliminate run off (HCHP) Heated water for wash bay (HCLP) Planted 100+ trees (HCLP) Surface drains to control water (HCLP) Stabilize drainage ditch (HCLP) Water separators for equipment (HCHP) 11

12 What s Next? Solid job reducing our use of natural gas. We need to reduce our use of electricity. Since 1997 cost of electricity has increased at a rate of 2.6%/year. Increasing pressure on the use of electricity given the proliferation of electronic devices Our focus to reduce consumption has been efficiency and conservation no power generation. We want to control expenses. Refine efficiency & conservation measures to save energy Generate electricity from renewable sources 12

13 Conservation/Efficiency (C/E) or Production? 2008 Established an Interim Electric Objective 20 by 2020 Consumption level 20,000 kw/month by 2020 (assuming no building additions) C/E Air Compressor Initiative ($27K) Reduced electric by 15% Annual savings $13,200 Return on Investment (ROI) 2.1 years Production from Wind or Solar ($45K systems) Wind offset electric by 2%; 50 yr ROI Solar offset electric by 2%; 50 yr ROI Indiana Office of Energy and Defense Development Grant 13

14 kwh per month Evidence from Merry Lea Wind & Solar Technologies are Complementary Solar Outperformed Wind in 2007 (6,212 vs. 4,304 kwh) 1400 Merry Lea Renewable Energy Output (2007) Solar PV Panels (4.8 kw Sanyo) Wind Turbine (10 kw Bergey Excel) 200 Total 0 14

15 Generation Choices Where? How much? When? Our analysis Showroom (9K kwh, Summer, Day) Svc Building (25K kwh, Summer, Day) Body Shop (7K kwh, Winter, Day) Off Site Lot (1K kwh, Winter, Night) 15

16 Energy Use 2011 Energ y U se Jan F eb M ar A p r M ay June July A ug Sep t Oct N o v D ec A vg. B o d y Sho p kw ( ) therm( ) Sho w R o o m kw ( ) kw ( ) SV C B uild ing kw ( ) kw ( ) therm( ) Of f sit e Lo t kw( ) So lar Po wer kw T o t al T herms T o t al T herms / T o t al Sq. F t T o t al Kw T o t al Kw / T o t al Sq. F t

17 Leap of Faith McCormick Motors was awarded $25,000 energy grant in October 2008 and made the investment. 17

18 Solar Plant 6.0 kw System Design: 500 kwh per month Actual Production: 750 kwh per month ROI: 18.5 years w/grant

19 Hidden Incentive - SREC Solar Renewable Energy Credit SREC s are earned when we produce 1 MW = 1 SREC Sold on the open market monthly Market rate fluctuates based on demand Anywhere from $0 to $800 per SREC Will eventually go away 19

20 Conservation/Efficiency or Production? Continuing to implement measures to conserve or be more efficient New technologies Further refinement of current initiatives Foster partnerships to exchange ideas Expanding solar grid Solar Energy Credits (SREC) generates additional income Planned expansion to 60+ kw by

21 Solar Plant Expand Solar Array from a 6.0 kw System of 28 panels to a...

22 Solar Plant 60.9 kw System of 250 Solar Panels Completed 4/26/13 Generating 7+ MWh/month Annual SREC Revenue of $22,000+

23 KW & Therm Use % Sq Ft kwh/yr Therms/yr 23

24 Energy Results (2013) Objective 50% reduction in energy use Results - 80% increase in building space (30,300 to 54,600 sq ft) 70% decrease in gas (2,265 to 650 Therms/mo.) 25% decrease in electric (29,500 to 22,000 kwh/mo.) 22% decrease in annual energy bill ($45K to $35K) 24

25 Electricity... What We Use... What We Produce kwh Year kwh Used (K) kwh Generated (K) Net kwh Used (K) 25

26 Electricity... Our progress in reducing consumption since 2009 kwh J F M A M J J A S O N D kwh Used 2009 kwh Used 2010 kwh Used 2011 kwh Used 2012 kwh Used

27 Electricity... During the 2012 heat wave our electric consumption was at a twenty year low! kwh kwh used 2012 kwh used J F M A M J J A S O N D 27

28 The Value of Investment Assumptions: Size is based on 28 panels costing $40,000 Panels produce 840 kwh/month Electricity costs $.12/kWh Each SREC is reimbursed at a rate of $250/SREC Excluded from the calculation: depreciation, tax credits, grants Calculation w/o SREC 840 kwh x 12 months = 10,080 kwh x $.12 = $1,210/$40,000 = 3% ROI is 33 years Calculation w/srec 10,080 kwh/1,000 = 10 SREC s 10 SREC s x $250 = $2,500 + $1,210 = $3,710/$40,000 = 9.3% ROI is 10.8 years (Note: 2.5% increase in electric rate reduces ROI by one year) 28

29 What s Next? Conservation/Efficiency or Production? Our initial 2020 solar panel goal completed in 2013 We still are short of our electric consumption goal We are faced with the same question Conservation/Efficiency or Production? Continue implementing measures to conserve and/or be more efficient Investigate emerging technologies Maintain current initiatives Foster partnerships to exchange ideas Expand solar grid Planned solar grid expansion to 120+ kw by

30 Employee Benefit Energy Conservation & Efficiency Fund Established in March 2009 Employee Completes Home Energy Audit Employee Presents a Plan to Save Energy Employee is Reimbursed 35% of cost up to a maximum of $700 30

31 Employee Benefit Energy Conservation & Efficiency Fund Since March home improvement projects completed $10,000 reimbursed to employees $65,000+ in home energy improvements 31

32 Why is this Important? Current cost of electrical energy 0 kw 64 kwh is $ kw 500 kwh is $ kw 3,000 kwh is $ Everything over 3,000 kwh is $ Electric cost per kilowatt hour has been increasing an average of 2.6%/yr since % in % in % in % in 2011 Increasing pressure on the use of electricity given the proliferation of electronic devices Electric use peaked in 2008 at 42,000 kwh/month 2013 consumption 23,000 kwh/month Goal is 20,000 kwh/month by

33 Sources of Electric Generation (Wikipedia, 2012) Coal 42% Natural Gas 25% Nuclear 19% Hydroelectric 8% Wind - 3% Biomass 1.4% Petroleum 1% Geothermal -.4% Solar.04% 33

34 US Production of Electricity from Renewable Sources (Wikipedia, 2012) Our standing in relationship with the rest of the world in terms of electric generation by source #4 Hydroelectricity #1 Wind Power #1 Biomass #5 Solar #1 Geothermal Our standing in relationship with the rest of the world in terms of percentage of generation from renewable sources #110 34